Wednesday, January 31, 2007

About Indian economic reforms

Though we have started on the reform path in 1991, there was some talk of slowing down of the reforms from the late 1990s. Here is a list of measures that are taken that counter this point of view:

  • Import duties have been brought to ASEAN levels (around 8%) for most items.
  • Bank reforms have liberalized interest rates, slashed non-performing loans and made a gradual move toward Basel II norms.
  • Agriculture barriers like APMC have been eroded though not removed, in many states. This paves the way for corporates to buy produce directly from the farmers.
  • Telecom reforms have sparked a revolution. Lowest tariffs in the world.
  • Though electricity sector has witnessed a slow pace, open access is a reality. The new tariff based bidding process has brought down the price per unit to Rs. 1.19 ps.
  • Railways are in surplus. Dedicated freight corridors are coming up.
  • Rural infrastructure is being strengthened through Bharat Nirman.
  • Sates have moved to VAT regime.
  • Number of items reserved fro SSI sector has come down from 880 to 326.

1 Comment:

MANAGEMENT THOUGHTS said...

I cannot agree that telcom tariffs are the lowest in India when compared to the world. There are countries w hose telecom rates are much cheaper. No doubt, India has made a headway and it is laudable. Communication is very important and the day all Indians are able to use the telcom features at affordable rates (no freebies), we can be proud of our achievement. Please remember that in our march towards progress, we need to take alongwith us millions of our rural breatherns who have been deprived of many of the basic facilities that urbanites enjoy.